Chalet Hotels reported a strong first quarter for FY27, with revenue growing 10% year-on-year to INR5,140 million, excluding its residential business. EBITDA surged 15% to INR2,400 million, with margins expanding by 231 basis points to 46.7%. The company highlighted robust performance in its hospitality and commercial real estate segments, driven by increased occupancies and average daily rates, and detailed strategic expansion plans for key properties.
Chalet Hotels Reports Robust Q1 FY27 Performance
Chalet Hotels Limited has announced its financial results for the quarter ended June 30, 2026, showcasing significant growth across its core businesses. The company reported a 10% year-on-year increase in revenue, reaching INR5,140 million, excluding its residential segment. EBITDA saw a substantial 15% rise, amounting to INR2,400 million, with EBITDA margins improving by 231 basis points to 46.7%.
Hospitality Segment Strengths
The hospitality division demonstrated resilience and strong performance, with revenue growing by 9% and EBITDA increasing by 11% year-on-year to INR1,784 million. This growth was supported by a 6.5% increase in RevPAR, primarily driven by an 8.5% rise in average daily rates. Resorts, in particular, experienced a 19% RevPAR growth, with properties like Westin Rishikesh and Athiva Khandala showing strong ramp-up. Domestic and leisure demand were key drivers, offsetting headwinds from the West Asia conflict impacting international tourist arrivals.
Commercial Real Estate Momentum
The commercial real estate segment continues to be a significant contributor, providing high margins and stable cash flows. Revenue for this segment grew by 18% year-on-year to INR865 million, with EBITDA up 21% to INR735 million. Occupancy levels were strong, reaching 91% following a new lease agreement in Bangalore. The company anticipates further growth with the upcoming commissioning of CIGNUS II at Powai, expected to drive substantial expansion from FY2028 onwards.
Strategic Outlook and Expansion
Looking ahead, Chalet Hotels has outlined a planned capital expenditure of approximately INR30 billion for FY27 to FY29, targeting expansion in both its hospitality and commercial real estate portfolios. This investment is expected to be largely funded through internal accruals. The company is focused on disciplined execution, operational excellence, and prudent capital allocation, aiming to add over 500 keys annually to its hospitality portfolio while strategically developing its commercial assets.
Key Property Developments
Significant progress is being made on various projects. The Vashi property is ready for rebranding, and construction at the Powai complex is progressing, with enhancements to its banquet facilities and connectivity expected to capitalize on the wedding season. The company is also evaluating expansion at its Udaipur resort and is awaiting approvals for its South Goa project, aiming to start construction by the end of the current quarter.
Financial Health
Net debt stood at INR20,405 million as of June 2026. The company maintains a comfortable liquidity position of around INR4 billion. The average cost of finance has marginally decreased to 7.4%.
Source: BSE
